Highly Compensated Employee 2024 Exemption 2024. Generally, the white collar and highly compensated employee exemptions require that employees be paid a specified minimum salary and satisfy a “duties test.” A recent final rule that will significantly increase the fair labor standards act’s (flsa’s) annual salary thresholds for the highly compensated employee (hce).
For highly compensated employees, also following the 2019 methodology, the annual compensation level to be exempt from overtime pay will increase from $107,432 to. Starting july 1, 2024, employers must satisfy a higher salary threshold in order to consider employees as exempt from fair labor standards act (flsa) overtime rules.